IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/97249.html

Corporate Governance and Liquidity Risk of Industrial and Commercial Bank of China (ICBC)

Author

Listed:
  • Sew, TianHuan

Abstract

In this paper, we are going to exam the relationship between the return on asset (ROA) with internal, external factors of the ICBC. Kupiec, P., & Lee, Y. (2012), stated that ROA is important statistic toward the profitability of banks. The data that we used is get from the annual reports of ICBC from the year of 2014 to 2018. The independent variables in this study which is internal and external factors are current ratio, credit risk, operating margin, CGI, GDP, interest rate, inflation, and also exchange rate, while the dependent variable is return on asset. Therefore, this study is to analyze the relationship between the internal and external factors of ICBC with return on asset. Data was analyzed by utilizing descriptive statistics, correlation, model of summary, ANOVA, and coefficient. In the analysis shows a significant relationship between return on assets and current ratio compare with other factors especially corporate governance index (CGI) and exchange rate.

Suggested Citation

  • Sew, TianHuan, 2019. "Corporate Governance and Liquidity Risk of Industrial and Commercial Bank of China (ICBC)," MPRA Paper 97249, University Library of Munich, Germany, revised 28 Nov 2019.
    • Handle: RePEc:pra:mprapa:97249
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/97249/1/MPRA_paper_97249.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Imbierowicz, Björn & Rauch, Christian, 2014. "The relationship between liquidity risk and credit risk in banks," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 242-256.
    2. Kosmas Njanike, 2009. "The Impact of Effective Credit Risk Management on Bank Survival," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(2), pages 173-184.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yan, Shiwei, 2019. "Corporate Governance and Liquidity Risk of Bank of China," MPRA Paper 97271, University Library of Munich, Germany, revised 28 Nov 2019.
    2. Carmen Orden‐Cruz & Jessica Paule‐Vianez & Júlio Lobão, 2023. "The effect of Economic Policy Uncertainty on the credit risk of US commercial banks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3420-3436, July.
    3. Katarzyna Kubiszewska, 2018. "Interdependence of Ratios in Banking Stability Pentagon (Wspolzaleznosc wskaznikow w Pieciokacie Stabilnosci Bankowej)," Research Reports, University of Warsaw, Faculty of Management, vol. 2(28), pages 65-79.
    4. Nguyen Quoc Anh & Duong Nguyen Thanh Phuong, 2021. "The impact of credit risk on the financial stability of commercial banks in Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 11(2), pages 67-80.
    5. Béchir Ben Lahouel & Lotfi Taleb & Younes Ben Zaied & Shunsuke Managi, 2024. "Financial stability, liquidity risk and income diversification: evidence from European banks using the CAMELS–DEA approach," Annals of Operations Research, Springer, vol. 334(1), pages 391-422, March.
    6. Marta Degl'Innocenti & Franco Fiordelisi & Claudia Girardone & Nemanja Radić, 2019. "Competition and risk‐taking in investment banking," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 28(2), pages 241-260, May.
    7. Gunay, Samet, 2020. "Seeking causality between liquidity risk and credit risk: TED-OIS spreads and CDS indexes," Research in International Business and Finance, Elsevier, vol. 52(C).
    8. Karikari Amoa-Gyarteng & Joseph Appiah Coleman & Oyin-Emi Eserifa, 2025. "Financial sustainability and credit risk: evidence from listed banks in Ghana," SN Business & Economics, Springer, vol. 5(7), pages 1-24, July.
    9. Arezoo Mohammadi & Mehrzad Minnoei & Zadollah Fathi & Mohamamd Ali Keramati & Hossein Baktiari, 2022. "Optimal allocation of bank resources and risk reduction through portfolio decentralization," International Journal of Economic Sciences, European Research Center, vol. 11(2), pages 92-143, November.
    10. George Kladakis & Lei Chen & Sotirios K. Bellos, 2022. "Wholesale funding and liquidity creation," Review of Quantitative Finance and Accounting, Springer, vol. 59(4), pages 1501-1524, November.
    11. Lu, Yiming & Wang, Yu, 2023. "Bank liquidity hoarding and bank systemic risk: The moderating effect of economic policy uncertainty," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    12. Bakoush, Mohamed & Abouarab, Rabab & Wolfe, Simon, 2019. "Disentangling the impact of securitization on bank profitability," Research in International Business and Finance, Elsevier, vol. 47(C), pages 519-537.
    13. Ruoyu Cai & Mao Zhang, 2017. "How Does Credit Risk Influence Liquidity Risk? Evidence from Ukrainian Banks," Visnyk of the National Bank of Ukraine, National Bank of Ukraine, issue 241, pages 21-33.
    14. Cheng, Maoyong & Geng, Hongyan & Zhang, Junrui, 2016. "Chinese commercial banks: Benefits from foreign strategic investors?," Pacific-Basin Finance Journal, Elsevier, vol. 40(PA), pages 147-172.
    15. Alexander Bechtel & Angelo Ranaldo & Jan Wrampelmeyer, 2023. "Liquidity Risk and Funding Cost," Review of Finance, European Finance Association, vol. 27(2), pages 399-422.
    16. Tianyi Ma & Minghui Jiang & Xuchuan Yuan, 2020. "Cash Salary, Inside Equity, or Inside Debt?—The Determinants and Optimal Value of Compensation Structure in a Long-term Incentive Model of Banks," Sustainability, MDPI, vol. 12(2), pages 1-24, January.
    17. Kladakis, George & Chen, Lei & Bellos, Sotirios K., 2022. "Bank regulation, supervision and liquidity creation," Journal of International Money and Finance, Elsevier, vol. 124(C).
    18. Naďa Blahová & Karel Brůna, 2015. "Ekonomické a regulatorní podmínky řízení likvidity v bankovním sektoru České republiky v kontextu aplikace poměru likvidního krytí [Economic and Regulatory Conditions of Liquidity Management in the Czech Banking Sector in the Context of Applicatio," Politická ekonomie, Prague University of Economics and Business, vol. 2015(6), pages 689-713.
    19. Mirela Monea, 2016. "Performance Indicators from Banking System," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 16(2), pages 69-76.
    20. Tarkocin, Coskun & Donduran, Murat, 2024. "Constructing early warning indicators for banks using machine learning models," The North American Journal of Economics and Finance, Elsevier, vol. 69(PB).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:97249. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.